"To have the remotes suddenly taken away from us for something totally out of our control is just crazy.
"We don't dispute someone is owed money but this is the wrong way to go about it.
"We are going to lose business with the school holidays coming next week and a big conference coming to town."
Mr Knight said he was going to launch a civil claim against GS World for breach of contract.
Cafe Ephesus owner Niyazi Gunaydin said a GS World representative took his remote control.
"He said they were making final changes and I would get it back soon.
"Now I don't know when I will get it back and it will start raining again on the weekend.
"Where will my customers sit when inside is full?" he asked.
Watts & Hughes commercial manager Dennis Cresswell said the company was "not impressed with the strong-arm approach from the Australian supplier".
He said they withheld payment to GS World due to an issue with the awnings, but this had been rectified this week to an acceptable standard "and the money held will be released for payment on Friday, September 26, as agreed with GS World on September 18," Mr Cresswell said.
"We sympathise with the business owners and at this stage the weather has been fine and to our knowledge there has been no disruption," he said.
But GS World executive director Patrick Choi said the company finished the job on August 2 and was told it would be receiving progress payments from Watts & Hughes during the building process.
"Yes, there were some disruptions due to the design of the hoods. Out of goodwill, we went back and replaced those hoods, but it has been almost two months and we have seen no payments."
Mr Choi said he felt sorry for Eat Streat businesses but they had to take "drastic measures" to force Watts & Hughes to pay.
"Payments have not been paid and promises not kept," he said.
The council's performance and delivery group acting chief operating officer, Henry Weston, said Watts & Hughes was asked to address the matter urgently but the council would "try to facilitate the resolution of the dispute".
"These discussions are ongoing and we hope it will be resolved in the next few days," Mr Weston said.